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Zensar reports strong margins, Revenue grew by 0.6% QoQ

Digital accounted for 61% of the overall revenues in Q2FY21

Pune, India, October 29, 2020: Zensar, a digital solutions and technology services company that specialises in partnering with global organisations on their digital transformation journey, announced its consolidated financial results for Quarter ending September 30, 2020, of the fiscal year 2020-2021.
 
Financial Highlights: 
  • In Q2FY21, the Company reported revenue of $131.6 Mn, an increase of 0.6% QoQ in USD terms
  • In Q2FY21, the PAT, excluding the one-time charge on TPM business held for sale, is at $12 Mn in USD terms and it was 9.1% of revenue
  • EBITDA increased from 14.4% in Q1FY21 to 18.8 % in Q2FY21. In absolute USD terms, this is an increase of 31.1% QoQ and 16.2% YoY
  • Gross Margin is at 34.1% in Q2FY21, as against 28.8% in Q1FY21. In absolute USD terms this amounted to QoQ and YoY increase by 19.2% and 1.2% respectively 
  • Significant improvement in cash position with net cash in Q2 (net of debt) at USD 117 Mn as compared to USD 101Mn in Q1 
  • Digital accounted for 61% of the overall revenues in Q2FY21 
  • The financial services business has grown, with insurance and banking segment growing at 4.6% and 11.5% QoQ respectively
  • Consumer Services has shown recovery in Q2FY21 with 12.8% QoQ increase 
 
Sandeep Kishore, Chief Executive Officer and Managing Director, Zensar Technologies, said, “
We have seen all our key metrics performing steadily in Q2FY21, as our adjusted PAT for the operating business at 9.1% was an increase of 24.0% QoQ in USD terms, our revenue has grown 0.6% on QoQ basis. Our people’s well-being continues to be our key priority as we enable them to perform seamlessly through secure remote working.”  
 
Adding further he said, “Our Digital Foundation Services continues to perform consistently posting a YoY growth of 11.4%; we have seen stability in Consumer Services business as it grew 12.8% sequentially and with addition of new logos in our Financial services business which has increased by 6.7% QoQ. We won USD 175 M of total TCV wins including renewals in Q2.”
 
Navneet Khandelwal, Chief Financial Officer, Zensar Technologies said, “Our efforts at streamlining financial and operational fundamentals in Q2FY21 has resulted in effective cash and cost management. We have seen an improvement in our Gross Margin at 34.1% which is an increase of 530 basis points over the previous quarter. Our EBITDA is at 18.8%, an increase of 440 basis points QoQ, as we continue our rigor in improving our operational efficiencies. Our adjusted PAT for the operating business was at 9.1% which is an increase of 170 basis points QoQ.”
 
*In Q2FY21, including the exceptional item of loss amounting to USD 11.9 Million on account of adjustment in respect of excess of carrying amount including goodwill over recoverable amount on classification as “Held for Sale”, reported PAT is USD 0.1 Million (Refer Note 6 of Published Quarterly Financial Results for Q2 FY21).
 
Significant Wins in Q2FY21:
 
  • Application and development mandate for a large US based hi-tech company
  • Digital commerce services for a large US based hi-tech company
  • Application and development services for a large diversified American conglomerate
  • Analytics and data science services for a leading bank from South Africa
  • Policy implementation services for a niche insurance company in the US
  • Cloud and infrastructure services for a US based large eye care company
 
Corporate Excellence Q2FY21:
  • Zensar granted US patent for its innovative tool enabling direct conversation with the organization’s leadership - ZenVerse™
  • Zensar’s digital transformation journey featured as a case study by the prestigious London Business School
  • Zensar recognized as aspirant in Salesforce Marketing and Commerce Cloud Services PEAK Matrix® Assessment 2020
  • Zensar has been recognized as an Aspirants in Cloud-Native Application Development Services PEAK Matrix® Assessment 2020
  • Zensar mentioned in Gartner's Blockchain Market Guide
  • Zensar mentioned as "Major Contender "in Everest Digital Interactive Experience (IX) Services PEAK Matrix® Assessment 2020
  • Zensar featured as Aspirant in Everest group’s Data and Analytics (D&A) Services PEAK Matrix® Assessment 2020
  • Note: All numbers are as per the Ind-AS reporting standard

    Note: All numbers are as per the Ind-AS reporting standard 

    Q2 FY 21 Revenue and profitability snapshot:

Particulars

Q3 FY20

Growth

USD Mn

INR Cr

Q-o-Q

Y-o-Y

USD

INR

CC

USD

INR

CC

Revenue

131.6

9794

0.6%

-1.2%

-0.6%

-13.6%

-8.7%

-12.8%

EBITDA

24.7

1842

31.1%

28.8%

 

16.2%

22.8%

 

EBIT

18.9

1410

45.5%

42.9%

 

19.6%

26.4%

 

Adjusted PAT*

12.0

892

24.0%

21.7%

 

5.7%

11.7%

 

 

About Zensar(www.zensar.com)

Zensar is a leading digital solutions and technology services company that specialises in partnering with global organisations across industries on their Digital Transformation journey. A technology partner of choice, backed by strong track-record of innovation; credible investment in Digital solutions; assertion of commitment to client’s success, Zensar ’s comprehensive range of digital and technology services and solutions enable its customers to achieve new thresholds of business performance. Zensar, with its experience in delivering excellence and superior client satisfaction through myriad technology solutions, is uniquely positioned to help them surpass challenges around running their existing business most efficiently, helping in their legacy transformation, and planning for business expansion and growth through innovative and digital ways.

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For any queries please feel free to reach out:
 
PR Contact (Global Headquarters - India):
Aradhana Prabhu
Public Relations
Zensar Technologies
+91 20 66057510  
aradhana.prabhu@zensar.com